Kia Is Asking EV9 Dealers Not To Add Markups

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Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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, Senior Pricing Analyst - November 2, 2023
2024 Kia EV9 GT-Line EV blue color

Kia is politely asking dealers not to mark-up its highly anticipated EV9. With the brand's first 3-row electric vehicle set to arrive before the end of the year, the prospect of Kia EV9 dealer markups may loom over potential buyers who've already reserved their vehicles and have been waiting to place a firm order.

In a letter sent to its dealers on Tuesday, Kia wrote "the EV9 customer is an important new owner to the Kia brand, and price transparency will be paramount as part of their purchase experience. We ask dealers to retail the EV9 without mark-up over the Manufacturer Suggested Retail Price."

But is this just wishful thinking? After all, dealers determine prices based on supply & demand, and models like the popular Kia Telluride have had markups since before the pandemic. We recently found a dealer marking up the Kia Forte to the point where it was more expensive than a Tesla Model 3.

2024 Kia EV9 rear view blue color

When the smaller Kia EV6 was introduced over a year ago, there were reports of $20,000 markups over MSRP. Now, the landscape has changed, with Kia offering big EV6 incentives thanks in large part to a key loophole that enables the foreign-built EV to qualify for a commercial tax credit when leased.

At the time, our analysis found that Kia EV6 markups may have been unavoidable due to razor-thin margins between the MSRP and invoice prices. We don't have EV9 invoice pricing just yet, but it could be possible that Kia intends to take the same approach with the all-new 7-passenger electric SUV.

Despite affordability being a big obstacle for consumers when it comes to EVs, not all dealers are making them more affordable. Just recently, a Chevy dealer listed a $10,000 markup on the new Blazer EV. Even the soon-to-be-discontinued Chevy Bolt EV has a $5,000 markup in some parts of the country.

As much as automakers may want dealers to not mark-up EVs due to the risk of upsetting customers, there may be little that they can do. To help put this into perspective, newer companies like Tesla and Rivian are able to essentially deal directly with consumers and don't charge traditional markups.

Explore Top Electric Car Lease Deals

, Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

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